Pickle DAO

author: @anoniminis, @leekuanjew

Summary

To increase $PICKLE emissions temporarily to accelerate Growth, by encouraging yield farming at the lowest possible cost. This coincides with our launch on the Polygon network.

Background

Pickle Finance has had an incredible few weeks with the launch of DILL, new partnerships, and new farms on Ethereum. Now, the core team wants to embark on the L2 journey and seeks to create new opportunities for yield farmers on Polygon, as well as increase our market share in Ethereum. The decision to go with Polygon should not come as a surprise since Aave, Curve, and Sushi are already there, expanding their multi-chain visions. Moreover, partners like ComethSwap, who have previously collaborated with Pickle to great success, will be joining us for the L2 ride.

Pickle also wants to accelerate its growth on the Ethereum network. After reaching $100M in TVL, we want to aim for the stars and add even more farms while offering a competitive rate to depositors who choose Pickle.

In Polygon, we are looking to capture at least 50% of our current TVL with the combined incentives from $PICKLE, $MUST and $MATIC, and our novel folding strategy in Aave. Overall, we aim for our end-of-year TVL to reach the ambitious figure of $1B – EOY1B.

The Case for Increased Emissions

Our experience as an emissions-based yield aggregator contrasts with a number of other protocols that have used increases in emissions to stimulate demand. That is because, since its inception, Pickle has constantly decreased or maintained fixed incentives. This is the first time an outright increase in emissions is being formally proposed to the Pickle community.

Take the case of the yAxis protocol, for example. The team at yAxis was able to successfully promote an increase in emissions and drove the total value locked as deposits in the protocol from $3M in late April to $150M now, an incredible 50x return in deposits in less than 30 days. Thanks to its massive increase in TVL, the yAxis Treasury is now predicted to generate $7.5M annually from fees.

To avoid the dilutive effects and encourage more $PICKLE to be locked for DILL, one option would be to allocate a percentage of the emissions increase to DILL lockers alongside the incentivization of strategies across multiple chains. The exact allocation of the distribution between DILL, Ethereum farms, and Polygon farms will be decided by the multi-sig in consultation with the core team from time to time for the duration of this expansion programme based on Pickle’s strategic objectives and will be transparently communicated to the community via announcements well in advance of any changes.

Proposal

We are proposing to increase the $PICKLE emission per block from 0.1 $PICKLE per block currently to:

• (a) 0.20 $PICKLE per block; or,
• (b) 0.30 $PICKLE per block.

Pickle will charge 20% performance fees on Polygon, the same as it currently does on the Ethereum network.

Under this proposal, an increased $PICKLE per block will run temporarily, until 31 December 2021 at 2359 GMT. Thereafter, the $PICKLE per block shall return to 0.10 or to whatever schedule a new governance proposal decides.

Due to the temporary nature of the increases, the impact on total supply is limited to, at most, less than 300,000 additional $PICKLEs compared to the current emissions schedule.

For

• (a) 0.20 $PICKLE per block
• (b) 0.30 $PICKLE per block

Note: a vote for either (a) or (b) will be counted as a vote to increase emissions. Should the sum of (a) and (b) beat option (c) (“Do nothing”), then the option with the largest share of votes will be used as the new PICKLE per block.

Against

• (c) Do nothing

Note: a vote for (c) will leave the emissions unchanged to 0.10 $PICKLE per block, should votes here beat the sum of votes to (a) and (b) combined.